FRANKFURT– The death toll from natural catastrophes such as earthquakes, storms and heatwaves increased dramatically worldwide in the very first 6 months of 2015, the world’s largest reinsurance company Munich Re stated on Tuesday.
Nevertheless, the financial expense of such events dropped to $35 billion from $42 billion, Munich Re said in a semiannual review, reflecting the fact that more happened in poorer parts of the world.
Insurance coverage covered just $12 billion of the half year’s losses compared with a long-lasting average of $15 billion, Munich Re’s data revealed. The figures support the industry’s view that much of the world remains under-insured and that insurance coverage could play a higher role in supporting economic recovery after a disaster.
The premiums for reinsuring natural disaster risk have the tendency to change in line with the payout levels.
The variety of individuals killed overall increased to 16,000 in the first half of 2015 from 2,800 the year before.
An earthquake in Nepal in April was the most damaging disaster, eliminating 8,850 individuals and destroying countless homes as well as cultural heritage websites.
Economic damage totaled $4.5 billion, comparable to practically a quarter of Nepal’s yearly gross domestic product. But just $140 countless that was guaranteed.
In economic terms, the costliest disaster was a series of winter storms that hit the northeastern United States and Canada at the end of February, triggering insured losses of $1.8 billion, with overall losses of $2.4 billion.
Some of the current severe weather conditions are tied to the El Nino weather pattern, or a warming of sea-surface temperature levels in the Pacific, which can result in scorching weather condition throughout Asia and east Africa but heavy rains and floods in South America.
“The currently already intense El Nino phase is expected to become even stronger as we head into the autumn,” Munich Re said, including that, nevertheless, El Nino years tended to see fewer typhoons in the United States.
Reinsurance companies such as MunichRe and competing Swiss Re assistance insurance business cover the expense of significant damage claims, such as for typhoons and earthquakes, in exchange for part of the premiums their insurance coverage business clients pay.